Policy on the Management of Country Risk by Credit Institutions

Size: px
Start display at page:

Download "Policy on the Management of Country Risk by Credit Institutions"

Transcription

1 2013 Policy on the Management of Country Risk by Credit Institutions

2 1 Policy on the Management of Country Risk by Credit Institutions Contents 1. Introduction and Application Application of this Policy Legal Basis Definitions 3 2. Supervisory Approach 4 3. Responsibilities of Credit Institutions Role of Board and Senior Management Policy and Procedures Lending Principles Country Risk Analysis Country Risk Ratings Country Exposure Limit Country Exposure Measurement Monitoring and Reporting Stress-testing Staffing and Organisation Provisioning Policy and Approach Inclusion in Internal Capital Adequacy Assessment Process Disclosure and Regulatory Reporting 15

3 Policy on the Management of Country Risk by Credit Institutions 2 1. Introduction and Application This Policy on Country Risk ( the Policy ) sets out the requirements and supervisory perspective of the Central Bank of Ireland ( the Central Bank ) with regard to ensuring that credit institutions have adequate policies and processes in place to identify, measure, evaluate, monitor, report and control or mitigate Country Risk in their lending and investment activities on a timely basis. The Central Bank deems it necessary to introduce this Policy in order to enhance the sound prudential regulation and supervision of banks and to have appropriate oversight of some of the risks associated with banks international lending. This facilitates our ability to comply with international best practise i.e. the Basel Core Principles for Effective Banking Supervision Application of this Policy This Policy applies to all licensed banks and building societies (subsequently referred to as credit institutions ) regulated by the Central Bank, including foreign subsidiaries of Irish credit institutions on consolidation. The Board of each credit institution is required, on an annual basis, to satisfy itself as to the applicability of this policy in the context of its international lending and investment activities. EEA Branches operating in the State fall outside the remit of this Policy. For subsidiaries of international banking groups authorised in Ireland the Central Bank recognises that some elements of Country Risk management may be carried out at a group level. In these instances, the Central Bank would expect the Board of the subsidiary to review the Group Country Risk policies and limits at least annually and, if it is satisfied that these are appropriate and meet the requirements set out in this document, endorse them for the local institution. If the Board deems that Group policies and processes are not appropriate for the subsidiary or do not meet the requirements as set out in this Policy, they cannot be endorsed by the Board of the subsidiary. In such instances the subsidiary will

4 3 Policy on the Management of Country Risk by Credit Institutions be required to develop local policy, limits and processes for Country Risk. The utilisation of local Country Risk limits must be reported periodically to the Board (or Board Risk Committee) of the subsidiary. 1.2 Legal Basis The requirements placed on credit institutions arising from this Policy are imposed by the Central Bank, as conditions to which all credit institutions are subject, pursuant to Section 10 of the Central Bank Act, 1971, and Section 17 of the Building Societies Act, Definitions Country Risk is the risk of exposure to loss caused by events in a foreign country. The concept is broader than Sovereign Risk, which is a sub-set of Country Risk, as all forms of lending or investment activity whether to/with individuals, corporates, banks or governments are covered. It includes on and off Balance Sheet exposures. The main categories of Country Risk comprise Sovereign, Transfer and Contagion Risk: Sovereign Risk is the risk that a foreign government may not have the capacity or willingness to repay its direct and indirect (i.e. guaranteed) foreign currency obligations; Transfer Risk is the risk that a borrower may not be able to convert local currency into foreign exchange and so may be unable to make debt service payments in foreign currency. The risk normally arises due to exchange restrictions imposed by the government in the borrower s country; Contagion Risk is the risk that developments in one country lead to a downgrade or adverse credit conditions not only for that country but also other countries in its region.

5 Policy on the Management of Country Risk by Credit Institutions 4 Other categories of Country Risk include: Currency Risk this is the risk that a borrower s holdings of domestic cash and income streams become inadequate to service its foreign currency obligations due to a devaluation of the domestic currency; Indirect Country Risk the risk that the repayment ability of a domestic borrower is adversely affected by developments in a foreign country where the borrower has business interests; and Macroeconomic Risk the risk that a borrower in a foreign country may suffer from economic policies of the government in that foreign country, e.g. higher interest rates or taxes, which adversely affects its repayment ability. 2. Supervisory Approach In determining its supervisory approach, the Central Bank will have regard to the Basel Committee s Core Principles for Effective Banking Supervision. In addition, the Central Bank will have regard to the size and complexity of a credit institution s international lending and investment activities and other factors set out in this policy in considering whether the credit institution has appropriate systems to control Country Risk and maintains adequate provisions for such risk. In reviewing the effectiveness of a credit institution s Country Risk management and the adequacy of provisions made, the Central Bank will: determine whether a credit institution s policies and processes give due regard to the identification, measurement, evaluation, monitoring, reporting and control or mitigation of Country Risk. The Central Bank will also determine if the policies and processes are consistent with the risk profile, systemic importance and risk appetite of the credit institution, taking into account market and macroeconomic conditions and provide a comprehensive bank-wide view of Country Risk exposure. Exposures (including, where relevant, intra-group exposures) should be identified,

6 5 Policy on the Management of Country Risk by Credit Institutions monitored and managed on a regional and an individual country basis (in addition to the end-borrower/end-counterparty basis). Credit institutions are required to monitor and evaluate developments in Country Risk and take appropriate mitigating action when necessary. determine whether a credit institution s strategies, policies and processes for the management of Country Risks have been approved by the credit institution s Board on an annual basis and that the Board oversees management in a way that ensures that these policies and processes are implemented effectively and fully integrated into the credit institution s overall risk management process. determine whether credit institutions have information systems, risk management systems and internal control systems that accurately aggregate, monitor and report country exposures on a timely basis; and ensure adherence to established country exposure limits. review the adequacy of provisioning by credit institutions against Country Risk (see subsection 3.11). require credit institutions to conduct stress test scenarios and to include appropriate scenarios into their stress testing programmes for risk management purposes to reflect Country Risk analysis. regularly obtain and review management information on a timely basis on the Country Risk of credit institutions. The Central Bank will obtain additional information, as needed (e.g. in crisis situations). 3 Responsibilities of Credit Institutions 3.1 Role of the Board and Senior Management Effective oversight by a credit institution s Board of Directors and senior management is essential to ensuring that Country Risk is managed satisfactorily There should be procedures in place for the approval of a credit institution s Country Risk management policy (see subsection 3.2 below) and for ensuring that

7 Policy on the Management of Country Risk by Credit Institutions 6 senior management implements appropriate measures to identify, monitor and control Country Risk in accordance with the policy The Board (or the Board Risk Committee) should review Country Risk exposures on a quarterly basis, or more frequently if required. Any significant changes in the conditions of a country in which the credit institution has substantial exposures, should be reported to the Board (or the Board Risk Committee) on a timely basis Country Risk must be managed on a centralised basis and integrated with a credit institution s overall credit risk management. 3.2 Policy and Procedures Credit institutions should have a clearly defined policy, approved by the Board and implemented by senior management, for Country Risk management and provisioning. The policy should be reviewed at least annually by the Board to determine whether it remains appropriate The policy may be subsidiary to, or form a part of, a credit institution s overall credit policy The details to be included in the policy, and any procedures drawn up in respect of them, should be reflective of the size and complexity of a credit institution s international lending and investment activities. The policy should set out the credit institution s business strategy in relation to international lending and investment activities, its risk appetite and risk tolerances. Credit institutions should consider including the following in their Country Risk policy 1 : 1 Where a credit institution has not included one or more of the items in this list in its policy, it must be in a position to demonstrate to the satisfaction of the Central Bank that it has considered its inclusion and concluded that this item(s) is not appropriate to its business.

8 7 Policy on the Management of Country Risk by Credit Institutions Country Risk appetite and the limits for international exposures (see subsection 3.7 below); clear lines of authority for approval of international lending and investments; types of Country Risk which may be incurred by the credit institution (see subsection 1.3 above) and the policies and procedures for managing them; the standards and criteria which the credit institution will use to analyse the risk of particular countries; the internal country rating system, if any, or how the Country Risk elements are factored into the credit institution s existing loan classification system; the methodology to be used in measuring Country Risk exposures; the Country Risk provisioning policy and methodology (see subsection 3.11 below); clear lines of authority for approval of exceptions to policy and the limits allowable for exceptions; reporting of exceptions; types of and criteria for acceptable collateral and guarantees, financial instruments and hedging strategies (e.g. credit derivatives or netting arrangements) which are permissible for the mitigation of Country Risk; the minimum standard terms and conditions to be incorporated in loan documentation in accordance with the legal requirements of each country; the process in place for evaluating the legitimacy of documentation and perfection of collateral; procedures for dealing with deteriorating situations in a country, including contingency plans and exit strategies; and types of management reports on Country Risk.

9 Policy on the Management of Country Risk by Credit Institutions Lending Principles Credit institutions should ensure that international lending and investments are subject to the same basic prudent credit granting criteria which are applied to domestic lending and investments Credit institutions should be cognisant that countries in which they are lending and investing may be undergoing a process of economic development and restructuring. In such countries, the infrastructure of commercial laws and regulations may not develop at the same pace. In some larger countries, there may be a lack of uniformity in laws and regulations and the interpretation of central directives by regional governments. Credit institutions should not assume that the same laws and regulations are in place in all regions. When required, credit institutions should seek advice from external counsel When accepting collateral relating to international lending, credit institutions should confirm that there has been full compliance with statutory procedures in the jurisdiction in question. As such, credit institutions should engage local legal counsel to confirm the legitimacy and enforceability of loan agreements, guarantees and other documentation. 3.4 Country Risk Analysis Credit institutions with significant international exposures should have appropriate systems for monitoring economic, social and political developments in the countries to which they have exposures. Credit institutions need to consider both quantitative and qualitative factors when assessing the risks associated with a particular country The quantitative factors which credit institutions should take into account include the size and maturity of exposures along with economic factors for each relevant country, e.g. exchange rate, interest rate, public debt level, GDP and other relevant statistics

10 9 Policy on the Management of Country Risk by Credit Institutions Factors used in qualitative assessments of Country Risk may include social and political stability and the legal and regulatory environment of the country. Credit institutions should also have regard to the country s compliance with international standards and codes Additional attention is required in relation to business dealings and transactions with counterparties from countries that do not sufficiently comply with international standards Credit institutions should be aware of the impact of changes in government strategy and policies. This is particularly important if credit institutions have substantial credit exposures to a particular business sector or region in a country. The reduction or withdrawal of governmental support for a sector or region or changes in governmental policies may adversely impact the repayment ability of borrowers in that sector or region. Credit institutions should therefore monitor the economic policy in the countries in which they do business Credit institutions should not rely entirely on external assessment in relation to Country Risk and should develop an appropriate internal assessment methodology in relation to countries where they have significant exposures In times of instability or crisis, credit institutions should consider taking appropriate actions, such as updating analyses more frequently and expanding the scope of Country Risk analysis Credit institutions should maintain formal Country Risk analysis files.

11 Policy on the Management of Country Risk by Credit Institutions Credit institutions should consider including the following in their Country Risk files 2 : analysis of political, economic and social issues of the country; reports submitted by country managers and credit officers; reports from visits to the country; reports from outside economic research services and rating agencies; published economic data and analysis; and copies of documentation approving limits and exceptions to limits The results of Country Risk analysis should be integrated with the process of approving credits, assigning country ratings (see subsection 3.5 below), setting country exposure limits (see subsection 3.6 below) and provisioning. 3.5 Country Risk Ratings Credit institutions that have significant international exposures, should establish a formal Country Risk rating system. Detailed policies and procedures for analysing and approving country credit risk ratings should be developed. The sophistication of such systems should be consistent with the size and complexity of a credit institution s international exposures Credit institutions should, at a minimum, take the following into consideration in developing their Country Risk rating systems: Country Risk ratings should be assigned at least annually to every country (in particular for countries in emerging markets) where credit institutions have substantial exposures. Interim reviews should be carried out when developments in a particular country warrant such reviews; credit risk ratings should be approved independently of business units; 2 Where a credit institution has not included one or more of the items in this list in its files, it must be in a position to demonstrate to the satisfaction of the Central Bank that it has considered its inclusion and concluded that this item(s) is not appropriate to its business.

12 11 Policy on the Management of Country Risk by Credit Institutions credit institutions should integrate the Country Risk rating system with their loan classification framework. For example, if a credit institution assigns an unfavourable rating to a country, it will need to consider whether to downgrade all its exposures relating to that country; and credit institutions should also use the Country Risk rating system when assessing the appropriate level of provisions. 3.6 Country Exposure Limits Credit institutions should have a system for establishing, maintaining and reviewing country exposure limits. Country exposure limits should be approved annually by the Board. The limits may be revised during the year in response to substantive changes in a country s risk profile Exceptions to country exposure limits should be approved by senior management or, depending on the size of the exception, the Board. exceptions should be reported to the Board on a timely basis. All Country exposure limits must be monitored independently of the business development function Credit institutions should ensure that the limits set for international lending are in line with the overall business strategy Credit institutions should set exposure limits for individual countries (particularly for countries in emerging markets) to manage and monitor Country Risk. Country exposure limits should apply to all on- and off-balance sheet exposures to foreign borrowers In setting limits credit institutions should consider the application of the following sub-limits: maturity (e.g. short term and long term);

13 Policy on the Management of Country Risk by Credit Institutions 12 type of borrower (e.g. financial institutions, sovereigns and corporates); type of Country Risk (e.g. sovereign, transfer, etc.); type of product (e.g. trade-related credits, project financing, derivatives and other off-balance sheet exposures, etc.) secured and unsecured; insured and uninsured; industry or economic sector of the borrower; and region The credit officers and other relevant staff of a credit institution must be made aware of the country exposure limits. 3.7 Country Exposure Measurement Systems for measuring country exposures need to be commensurate with the size and complexity of individual credit institutions international lending operations Credit institutions should ensure that their systems are sufficiently comprehensive to capture all significant exposures and to permit adequate analysis of different types of risk. Credit institutions measurement systems, at a minimum, should: measure country exposure on a solo and consolidated basis; be able to measure different types of exposures (e.g. foreign exchange and interest rate contracts); and provide a sufficient breakdown (e.g. by type of borrower, exposure, collateral, maturity, etc.) for analysis by country. 3.8 Monitoring and Reporting Credit institutions should consider carrying out regular country visits, including visits to their foreign branches and subsidiaries, and maintain direct

14 13 Policy on the Management of Country Risk by Credit Institutions contacts with authorities in relevant countries. The frequency of such visits should be determined by the materiality of the Country Risk exposure Credit institutions should perform frequent credit reviews and monitoring of their overseas exposures to identify unusual developments and, if appropriate, initiate necessary actions Credit institutions should have an effective system in place to produce management reports which are sufficiently detailed for senior management review and to identify exceptions in a timely manner. All exceptions to set limits must be reported to the Board in a timely manner Country Risk Reports containing sufficiently detailed information should be provided to the Board on a quarterly basis, or more frequently if required. Significant changes to a credit institutions Country Risk profile should be reported to the Board on a timely basis. 3.9 Stress-testing Credit institutions should conduct stress-testing analysis of their Country Risk exposures in order to monitor actual and potential risks Such testing should include evaluation of the impact on a credit institution's assets and liabilities should various potential Country Risk events occur It should also include a correlation analysis to detect or cater for contagion risk, particularly for countries in the same region, or with strong political or economic ties Results of stress-testing should be reported to the Board on a regular basis.

15 Policy on the Management of Country Risk by Credit Institutions Staffing and Organisation Credit institutions should dedicate adequate resources to the Country Risk management process, taking into account the extent of their involvement in international lending Credit institutions should ensure the staff responsible for the function have the necessary experience and expertise Responsibility for Country Risk may be assigned either to a senior executive (e.g. a Country Risk Officer) or to an appropriate committee. Credit institutions may also establish a specialised unit or department to analyse Country Risk (see subsection 3.4 above), propose country exposure limits and carry out regular country reviews The function responsible for analysing Country Risk, setting limits and monitoring the credit institution's Country Risk exposures must be independent of the business development function Provisioning Policy and Approach Country Risk provisions refer to provisions set aside by credit institutions to absorb likely losses arising from their Country Risk exposures. It is expected that any provision for Country Risk would normally be incorporated with a specific provision rather than being a separate provision Credit institutions should adopt a rigorous process for determining the appropriate level of provisions for their Country Risk. The process should be documented in their provisioning policy and approved by the Board Credit institutions should have a process in place for determining an appropriate level of provisions. This should include the following:

16 15 Policy on the Management of Country Risk by Credit Institutions identifying sovereign exposures with current/potential repayment difficulties; analysing the nature of those difficulties and the extent of the problems; and determining what proportion, at the time of review, of exposures to that country is unlikely to be repaid in full Any Country Risk provisions made should be justifiable and properly approved and documented Where a credit institution has an internal Country Risk rating system, it should clearly demonstrate how its Country Risk rating system is integrated with its provisioning methodology. As stated in section 2 above, the Central Bank will review the setting of appropriate provisions against Country Risk. The Central Bank will conduct regular reviews of the level of Country Risk provisions made by individual credit institutions 4. Inclusion in Internal Capital Adequacy Assessment Process ( ICAAP ) As part of its ICAAP, a credit institution must determine whether Country Risk constitutes a material risk and, if so, it should consider allocating capital as a mitigation of this risk. 5. Disclosure and Regulatory Reporting 5.1 Credit institutions should establish systems and procedures to ensure the accuracy of reporting in respect of international exposures and Country Risk provisions. 5.2 Credit institutions will provide copies of Country Risk Management policies to the Central Bank upon request.

17 Policy on the Management of Country Risk by Credit Institutions Credit institutions will provide details of Country Risk exposures and Country Risk provisions to the Central Bank on a regular basis. The Central Bank will determine the frequency of reporting for each credit institution based on the significance of the credit institution s Country Risk exposure.

18 T countryrisk@centralbank.ie Bosca PO 559, Sráid an Dáma, Baile Átha Cliath 2, Éire P.O. Box No 559, Dame Street, Dublin 2, Ireland

Statement of Guidance

Statement of Guidance Statement of Guidance Country and Transfer Risk Management by Banks 1. Statement of Objectives 1.1. To provide guidance on the accepted level of risk associated with international banking activities, in

More information

STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK

STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK STANDARDS OF SOUND BUSINESS PRACTICES COUNTRY AND TRANSFER RISK 2005 The. All rights reserved 1 STANDARDS OF BEST PRACTICE ON COUNTRY AND TRANSFER RISK A. PURPOSE/OBJECTIVE This document sets out the minimum

More information

GUIDELINES ON CORPORATE GOVERNANCE FOR LABUAN BANKS

GUIDELINES ON CORPORATE GOVERNANCE FOR LABUAN BANKS GUIDELINES ON CORPORATE GOVERNANCE FOR LABUAN BANKS 1.0 Introduction 1.1 Good corporate governance practice improves safety and soundness through effective risk management and creates the ability to execute

More information

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes Interest-in-Shares and Collective BNM/RH/GL 001-30 Prudential Financial Policy Department PART A INTRODUCTION AND OVERVIEW... 1 1. Overview of the Guidelines... 1 2. Definitions... 1 3. Legal Enforceability

More information

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes for Islamic Banks

Guidelines on Investment in Shares, Interest-in-Shares and Collective Investment Schemes for Islamic Banks Interest-in-Shares and Collective Investment Schemes for Islamic Banks BNM/RH/ GL 002-5 PART A: INTRODUCTION AND OVERVIEW...1 1. Overview of the Guidelines... 1 2. Definitions... 2 3. Legal Enforceability

More information

S t a n d a r d 4. 4 a. M a n a g e m e n t o f c r e d i t r i s k. Regulations and guidelines

S t a n d a r d 4. 4 a. M a n a g e m e n t o f c r e d i t r i s k. Regulations and guidelines S t a n d a r d 4. 4 a M a n a g e m e n t o f c r e d i t r i s k Regulations and guidelines THE FINANCIAL SUPERVISION AUTHORITY 4 Capital adequacy and risk management until further notice J. No. 1/120/2004

More information

Basel Committee on Banking Supervision

Basel Committee on Banking Supervision Basel Committee on Banking Supervision Liquidity coverage ratio disclosure standards January 2014 (rev. March 2014) This publication is available on the BIS website (www.bis.org). Bank for International

More information

LIQUIDITY RISK MANAGEMENT GUIDELINE

LIQUIDITY RISK MANAGEMENT GUIDELINE LIQUIDITY RISK MANAGEMENT GUIDELINE April 2009 Table of Contents Preamble... 3 Introduction... 4 Scope... 5 Coming into effect and updating... 6 1. Liquidity risk... 7 2. Sound and prudent liquidity risk

More information

RISK FACTORS AND RISK MANAGEMENT

RISK FACTORS AND RISK MANAGEMENT Bangkok Bank Public Company Limited 044 RISK FACTORS AND RISK MANAGEMENT Bangkok Bank recognizes that effective risk management is fundamental to good banking practice. Accordingly, the Bank has established

More information

Capital Adequacy: Asset Risk Charge

Capital Adequacy: Asset Risk Charge Prudential Standard LPS 114 Capital Adequacy: Asset Risk Charge Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital

More information

Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc.

Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Introduction Basel II is an international framework on capital that applies to deposit taking institutions in many countries, including Canada.

More information

1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act).

1. This Prudential Standard is made under paragraph 230A(1)(a) of the Life Insurance Act 1995 (the Act). Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated

More information

Supervisory Policy Manual

Supervisory Policy Manual This module should be read in conjunction with the Introduction and with the Glossary, which contains an explanation of abbreviations and other terms used in this Manual. If reading on-line, click on blue

More information

Disclosure 17 OffV (Credit Risk Mitigation Techniques)

Disclosure 17 OffV (Credit Risk Mitigation Techniques) Disclosure 17 OffV (Credit Risk Mitigation Techniques) The Austrian Financial Market Authority (FMA) and the Oesterreichsiche Nationalbank (OeNB) have assessed UniCredit Bank Austria AG for the use of

More information

Risk Management Programme Guidelines

Risk Management Programme Guidelines Risk Management Programme Guidelines Submissions are invited on these draft Reserve Bank risk management programme guidelines for non-bank deposit takers. Submissions should be made by 29 June 2009 and

More information

Prof Kevin Davis Melbourne Centre for Financial Studies. Managing Liquidity Risks. Session 5.1. Training Program ~ 8 12 December 2008 SHANGHAI, CHINA

Prof Kevin Davis Melbourne Centre for Financial Studies. Managing Liquidity Risks. Session 5.1. Training Program ~ 8 12 December 2008 SHANGHAI, CHINA Enhancing Risk Management and Governance in the Region s Banking System to Implement Basel II and to Meet Contemporary Risks and Challenges Arising from the Global Banking System Training Program ~ 8 12

More information

Application for a Banking Authority Foreign Bank Branches Prudential Statement J2

Application for a Banking Authority Foreign Bank Branches Prudential Statement J2 Application for a Banking Authority Foreign Bank Branches Prudential Statement J2 PS J2 Introduction 1. A foreign bank wishing to operate as a branch in Australia must obtain a banking authority issued

More information

Bank of America NA Dublin Branch Market Discipline. Basel II - Disclosures

Bank of America NA Dublin Branch Market Discipline. Basel II - Disclosures Bank of America NA Dublin Branch Market Discipline Basel II - Disclosures Disclosure 1 - Scope of application The Basel II disclosures contained herein relate to Bank of America, NA Dublin Branch herein

More information

PILLAR 3 DISCLOSURES 2009

PILLAR 3 DISCLOSURES 2009 PILLAR 3 DISCLOSURES 2009 Company Registration Number: C 16343 Contents Page Introduction............................................................... 3 Risk Management Objectives and Policies.................................

More information

GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES

GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES 20 th February, 2013 To Insurance Companies Reinsurance Companies GUIDELINES ON RISK MANAGEMENT AND INTERNAL CONTROLS FOR INSURANCE AND REINSURANCE COMPANIES These guidelines on Risk Management and Internal

More information

Guidance Note 3/99. Guidance Note 2/99. Money Market Funds: European Central Bank Reporting Requirements. December 2011

Guidance Note 3/99. Guidance Note 2/99. Money Market Funds: European Central Bank Reporting Requirements. December 2011 2011 Guidance Note 3/99 Guidance Note 2/99 Money Market Funds: European Central Bank Reporting Requirements December 2011 1 Contents Contents 1. Introduction... 3 2. Background... 3 3. Money Market Funds

More information

CONSULTATION PAPER CP 41 CORPORATE GOVERNANCE REQUIREMENTS FOR CREDIT INSTITUTIONS AND INSURANCE UNDERTAKINGS

CONSULTATION PAPER CP 41 CORPORATE GOVERNANCE REQUIREMENTS FOR CREDIT INSTITUTIONS AND INSURANCE UNDERTAKINGS CONSULTATION PAPER CP 41 CORPORATE GOVERNANCE REQUIREMENTS FOR CREDIT INSTITUTIONS AND INSURANCE UNDERTAKINGS 2 PROPOSAL 1.1 It is now widely recognised that one of the causes of the international financial

More information

Central Bank of The Bahamas Consultation Paper PU42-0408 Draft Guidelines for the Management of Interest Rate Risk

Central Bank of The Bahamas Consultation Paper PU42-0408 Draft Guidelines for the Management of Interest Rate Risk Central Bank of The Bahamas Consultation Paper PU42-0408 Draft Guidelines for the Management of Interest Rate Risk Policy Unit Bank Supervision Department April16 th 2008 Consultation Paper Draft Guidelines

More information

Corporate Governance Code for Captive Insurance and Captive Reinsurance Undertakings

Corporate Governance Code for Captive Insurance and Captive Reinsurance Undertakings 2011 Corporate Governance Code for Captive Insurance and Captive Reinsurance Undertakings 3 Contents Section No. Contents Page No. 1 Scope 4 2 Definitions 6 3 Legal Basis 8 4 Reporting to the Central Bank

More information

Guidance Note on Credit and Credit Control for Credit Unions. October 2007. Office of the Registrar of Credit Unions

Guidance Note on Credit and Credit Control for Credit Unions. October 2007. Office of the Registrar of Credit Unions Guidance Note on Credit and Credit Control for Credit Unions October 2007 Office of the Registrar of Credit Unions Contents Page Introduction 2 1. The Board of Directors 3 2. Credit Policy 5 3. Credit

More information

on Asset Management Management

on Asset Management Management 2008 Guidelines for for Insurance Insurance Undertakings Undertakings on Asset on Asset Management Management 2 Contents Context...3 1. General...3 2. Introduction...3 3. Regulations and guidelines for

More information

Capital Requirements Directive Pillar 3 Disclosure. December 2015

Capital Requirements Directive Pillar 3 Disclosure. December 2015 Capital Requirements Directive Pillar 3 Disclosure December 2015 1. Background The purpose of this document is to outline the Pillar 3 disclosures for BlueBay Asset Management LLP ( BlueBay ). BlueBay

More information

CREDIT RISK. Monetary Authority of Singapore. March 2013. Monetary Authority of Singapore. Monetary Authority of Singapore

CREDIT RISK. Monetary Authority of Singapore. March 2013. Monetary Authority of Singapore. Monetary Authority of Singapore CREDIT RISK March 2013 Table of Contents 1 Introduction 1 2 Fundamentals 1 3 Risk Management Policies and Procedures 2 3.1 Risk Management Strategy 2 3.2 Risk Management Structure 2 3.3 Credit Policies

More information

HOCH CAPITAL LTD PILLAR 3 DISCLOSURES As at 1 February 2015

HOCH CAPITAL LTD PILLAR 3 DISCLOSURES As at 1 February 2015 HOCH CAPITAL LTD PILLAR 3 DISCLOSURES As at 1 February 2015 TABLE OF CONTENTS 1. Overview / Background 1.1 Introduction 1.2 Frequency of disclosure 1.3 Location and verification of disclosure 1.4 Scope

More information

Code of Practice - Risk Management Including With Regard To Debtors

Code of Practice - Risk Management Including With Regard To Debtors Code of Practice - Risk Management Including With Regard To Debtors The Code of Practice was first approved by the Minister of Finance on the 5 th July 2010, with this updated version approved by the Minister

More information

EASTERN CARIBBEAN CENTRAL BANK

EASTERN CARIBBEAN CENTRAL BANK EASTERN CARIBBEAN CENTRAL BANK GUIDELINES ON CREDIT RISK MANAGEMENT FOR INSTITUTIONS LICENSED TO CONDUCT BANKING BUSINESS UNDER THE BANKING ACT Prepared by the BANK SUPERVISION DEPARTMENT May 2009 TABLE

More information

@ HONG KONG MONETARY AUTHORITY

@ HONG KONG MONETARY AUTHORITY ., wm~i!l1f~nu CR G 3 Credit Administration, Measurement V. 1-19.01.01 This module should be read in conjunction with the Introduction and with the Glossary, which contains an explanation of abbreviations

More information

Capital Adequacy: Advanced Measurement Approaches to Operational Risk

Capital Adequacy: Advanced Measurement Approaches to Operational Risk Prudential Standard APS 115 Capital Adequacy: Advanced Measurement Approaches to Operational Risk Objective and key requirements of this Prudential Standard This Prudential Standard sets out the requirements

More information

Sound Practices for the Management of Operational Risk

Sound Practices for the Management of Operational Risk 1 Sound Practices for the Management of Operational Risk Authority 1.1 Section 316 (4) of the International Business Corporations Act (IBC Act) requires the Commission to take any necessary action required

More information

FOREIGN EXCHANGE RISK MANAGEMENT

FOREIGN EXCHANGE RISK MANAGEMENT STANDARDS OF SOUND BUSINESS PRACTICES FOREIGN EXCHANGE RISK MANAGEMENT 2005 The. All rights reserved Foreign Exchange Risk Management Page 2 FOREIGN EXCHANGE RISK MANAGEMENT A. PURPOSE This document sets

More information

6/8/2016 OVERVIEW. Page 1 of 9

6/8/2016 OVERVIEW. Page 1 of 9 OVERVIEW Attachment Supervisory Guidance for Assessing Risk Management at Supervised Institutions with Total Consolidated Assets Less than $50 Billion [Fotnote1 6/8/2016 Managing risks is fundamental to

More information

MISSION VALUES. The guide has been printed by:

MISSION VALUES. The guide has been printed by: www.cudgc.sk.ca MISSION We instill public confidence in Saskatchewan credit unions by guaranteeing deposits. As the primary prudential and solvency regulator, we promote responsible governance by credit

More information

PRINCIPLES FOR THE MANAGEMENT OF CONCENTRATION RISK

PRINCIPLES FOR THE MANAGEMENT OF CONCENTRATION RISK ANNEX 2G PRINCIPLES FOR THE MANAGEMENT OF CONCENTRATION RISK Concentration risk can be defined as any single (direct and/or indirect) exposure or group of exposures with the potential to produce losses

More information

Insurance Guidance Note No. 14 System of Governance - Insurance Transition to Governance Requirements established under the Solvency II Directive

Insurance Guidance Note No. 14 System of Governance - Insurance Transition to Governance Requirements established under the Solvency II Directive Insurance Guidance Note No. 14 Transition to Governance Requirements established under the Solvency II Directive Date of Paper : 31 December 2013 Version Number : V1.00 Table of Contents General governance

More information

Consultation Paper on Liquidity Coverage Ratio Disclosure Requirements

Consultation Paper on Liquidity Coverage Ratio Disclosure Requirements CONSULTATION PAPER P018-2015 Consultation Paper on Disclosure Requirements October 2015 i TABLE OF CONTENTS TABLE OF CONTENTS... ii 1 Preface... 1 2 Specific Areas for Comment... 3 2.1 Scope of Application...

More information

Principles for the Management of Credit Risk

Principles for the Management of Credit Risk Principles for the Management of Credit Risk I. Introduction 1. While financial institutions have faced difficulties over the years for a multitude of reasons, the major cause of serious banking problems

More information

SUPERVISION GUIDELINE NO. 9 ISSUED UNDER THE AUTHORITY OF THE FINANCIAL INSTITUTIONS ACT 1995 (NO. 1 OF 1995) RISK MANAGEMENT

SUPERVISION GUIDELINE NO. 9 ISSUED UNDER THE AUTHORITY OF THE FINANCIAL INSTITUTIONS ACT 1995 (NO. 1 OF 1995) RISK MANAGEMENT SUPERVISION GUIDELINE NO. 9 ISSUED UNDER THE AUTHORITY OF THE FINANCIAL INSTITUTIONS ACT 1995 (NO. 1 OF 1995) RISK MANAGEMENT Bank of Guyana July 1, 2009 TABLE OF CONTENTS 1.0 Introduction 2.0 Management

More information

Pillar 3 Disclosures. Principality Group 31 December 2008

Pillar 3 Disclosures. Principality Group 31 December 2008 Pillar 3 Disclosures Principality Group 31 December 2008 Contents 1. Overview 3 1.1 Background 1.2 Basis and frequency of disclosures 1.3 Scope of application 1.4 External audit 2. Risk Management Objectives

More information

Advisory Guidelines of the Financial Supervisory Authority. Requirements regarding the arrangement of operational risk management

Advisory Guidelines of the Financial Supervisory Authority. Requirements regarding the arrangement of operational risk management Advisory Guidelines of the Financial Supervisory Authority Requirements regarding the arrangement of operational risk management These Advisory Guidelines have established by resolution no. 63 of the Management

More information

As of July 1, 2013. Risk Management and Administration

As of July 1, 2013. Risk Management and Administration Risk Management Risk Control The ORIX Group allocates management resources by taking into account Group-wide risk preference based on management strategies and the strategy of individual business units.

More information

Close Brothers Group plc

Close Brothers Group plc Close Brothers Group plc Pillar 3 disclosures for the year ended 31 July 2008 Close Brothers Group plc Pillar 3 disclosures for the year ended 31 July 2008 Contents 1. Overview 2. Risk management objectives

More information

July 2013 RELATED PARTY LENDING FREQUENTLY ASKED QUESTIONS

July 2013 RELATED PARTY LENDING FREQUENTLY ASKED QUESTIONS July 2013 RELATED PARTY LENDING FREQUENTLY ASKED QUESTIONS 1 Contents 1 Introduction... 2 2 General Information... 3 3 Scope, Legal Basis and Application... 6 4 Lending... 9 5 Related Parties and Connected

More information

PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2

PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2 PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2 PART II POLICY REQUIREMENTS...3 Investment and Risk Management Policy...3 Monitoring and Control...5 Roles of

More information

Capital Market Services UK Limited Pillar 3 Disclosure

Capital Market Services UK Limited Pillar 3 Disclosure February 2013 Capital Market Services UK Limited Pillar 3 Disclosure Contents 1.0 Overview 2.0 Frequency and location of disclosure 3.0 Verification 4.0 Scope of application 5.1 Risk Management objectives

More information

Interagency Policy Statement on the 1. Allowance for Loan and Lease Losses [Footnote

Interagency Policy Statement on the 1. Allowance for Loan and Lease Losses [Footnote Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of Thrift Supervision Interagency

More information

Fund Management Companies Guidance

Fund Management Companies Guidance 2015 Fund Management Companies - Guidance Fund Management Companies Guidance November 2015 1 Contents Part I. Delegate Oversight 2 Part II. Organisational Effectiveness 24 Part III. Directors Time Commitments

More information

Guidelines. ADI Authorisation Guidelines. www.apra.gov.au Australian Prudential Regulation Authority. April 2008

Guidelines. ADI Authorisation Guidelines. www.apra.gov.au Australian Prudential Regulation Authority. April 2008 Guidelines ADI Authorisation Guidelines April 2008 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright These guidelines are not legal advice and users are encouraged to

More information

Key matters in examining Liquidity Risk Management at Large Complex Financial Groups

Key matters in examining Liquidity Risk Management at Large Complex Financial Groups Key matters in examining Liquidity Risk Management at Large Complex Financial Groups (1) Governance of liquidity risk management Senior management of a large complex financial group (hereinafter referred

More information

Reserve Bank of Fiji Insurance Supervision Policy Statement No. 8 MINIMUM REQUIREMENTS FOR RISK MANAGEMENT FRAMEWORKS OF LICENSED INSURERS IN FIJI

Reserve Bank of Fiji Insurance Supervision Policy Statement No. 8 MINIMUM REQUIREMENTS FOR RISK MANAGEMENT FRAMEWORKS OF LICENSED INSURERS IN FIJI Reserve Bank of Fiji Insurance Supervision Policy Statement No. 8 NOTICE TO INSURANCE COMPANIES LICENSED UNDER THE INSURANCE ACT 1998 MINIMUM REQUIREMENTS FOR RISK MANAGEMENT FRAMEWORKS OF LICENSED INSURERS

More information

Report on Internal Control

Report on Internal Control Annex to letter from the General Secretary of the Autorité de contrôle prudentiel to the Director General of the French Association of Credit Institutions and Investment Firms Report on Internal Control

More information

Market Risk Capital Disclosures Report. For the Quarter Ended March 31, 2013

Market Risk Capital Disclosures Report. For the Quarter Ended March 31, 2013 MARKET RISK CAPITAL DISCLOSURES REPORT For the quarter ended March 31, 2013 Table of Contents Section Page 1 Morgan Stanley... 1 2 Risk-based Capital Guidelines: Market Risk... 1 3 Market Risk... 1 3.1

More information

State Farm Bank, F.S.B.

State Farm Bank, F.S.B. State Farm Bank, F.S.B. 2015 Annual Stress Test Disclosure Dodd-Frank Act Company Run Stress Test Results Supervisory Severely Adverse Scenario June 25, 2015 1 Regulatory Requirement The 2015 Annual Stress

More information

ugust, 2010 RISK MANAGEMENT GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2010

ugust, 2010 RISK MANAGEMENT GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2010 ugust, 2010 RISK MANAGEMENT GUIDELINES FOR BANKS AND FINANCIAL INSTITUTIONS, 2010 Directorate of Banking Supervision Bank of Tanzania Dar es Salaam August, 2010 TABLE OF CONTENTS PAGE 1.0 RISK MANAGEMENT

More information

1. Introduction... 3. 2. Process for determining the solvency need... 4. 3. Definitions of main risk types... 9

1. Introduction... 3. 2. Process for determining the solvency need... 4. 3. Definitions of main risk types... 9 Contents Page 1. Introduction... 3 2. Process for determining the solvency need... 4 2.1 The basis for capital management...4 2.2 Risk identification...5 2.3 Danske Bank s internal assessment of its solvency

More information

Core Principles for Effective Banking Supervision: New Edition Released

Core Principles for Effective Banking Supervision: New Edition Released News Bulletin September 17, 2012 Core Principles for Effective Banking Supervision: New Edition Released Last Friday, September 14, 2012, the Basel Committee on Banking Supervision published a new set

More information

The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015

The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015 The Northern Trust Company, Canada Basel III Pillar lll Disclosure as at December 31, 2015 Subject to Board Approval Posting date: January 29, 2016 Contents NORTHERN TRUST OVERVIEW AND SCOPE OF APPPLICATION.

More information

INTERNAL CAPITAL ADEQUACY ASSESSMENT

INTERNAL CAPITAL ADEQUACY ASSESSMENT INTERNAL CAPITAL ADEQUACY ASSESSMENT 30 june 2011 Contents Page 1. Introduction... 3 2. Process for determining the solvency need... 4 2.1. The basis for capital management... 4 2.2. Risk identification...

More information

Statement of Principles

Statement of Principles Statement of Principles Bank Registration and Supervision Prudential Supervision Department Document Issued: 2 TABLE OF CONTENTS Subject Page A. INTRODUCTION... 3 B. PURPOSES OF BANK REGISTRATION AND SUPERVISION...

More information

NEED TO KNOW. IFRS 9 Financial Instruments Impairment of Financial Assets

NEED TO KNOW. IFRS 9 Financial Instruments Impairment of Financial Assets NEED TO KNOW IFRS 9 Financial Instruments Impairment of Financial Assets 2 IFRS 9 FINANCIAL INSTRUMENTS IMPAIRMENT OF FINANCIAL ASSETS IFRS 9 FINANCIAL INSTRUMENTS IMPAIRMENT OF FINANCIAL ASSETS 3 TABLE

More information

S t a n d a r d 4. 4 c. M a n a g e m e n t o f m a r k e t r i s k. Regulations and guidelines

S t a n d a r d 4. 4 c. M a n a g e m e n t o f m a r k e t r i s k. Regulations and guidelines S t a n d a r d 4. 4 c M a n a g e m e n t o f m a r k e t r i s k Regulations and guidelines H o w t o r e a d a s t a n d a r d A standard is a collection of subject-specific regulations and guidelines

More information

BASEL III PILLAR 3 DISCLOSURES. March 31, 2014

BASEL III PILLAR 3 DISCLOSURES. March 31, 2014 BASEL III PILLAR 3 DISCLOSURES Table of Contents 2 Table 1. Scope of application HomEquity Bank (the Bank) is a federally regulated Schedule I bank, incorporated and domiciled in Canada. The Bank s main

More information

The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)

The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) Supervisory Statement SS5/13 The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) December 2013 Prudential Regulation Authority 20 Moorgate

More information

Best Practices for Credit Risk Management. Rules Notice Guidance Notice Dealer Member Rules

Best Practices for Credit Risk Management. Rules Notice Guidance Notice Dealer Member Rules Rules Notice Guidance Notice Dealer Member Rules Please distribute internally to: Credit Institutional Internal Audit Legal and Compliance Operations Regulatory Accounting Retail Senior Management Trading

More information

PART B INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP)

PART B INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS (ICAAP) Framework (Basel II) Internal Capital Adequacy Assessment PART A OVERVIEW...2 1. Introduction...2 2. Applicability...3 3. Legal Provision...3 4. Effective Date of Implementation...3 5. Level of Application...3

More information

POLICY. Enclosed Joint Interagency Policy Statement and FAQ document.

POLICY. Enclosed Joint Interagency Policy Statement and FAQ document. NO. 06-01 DATE: December 2006 PURPOSE. To distribute an interagency advisory (the Advisory) addressing the allowance for loan and lease losses (ALLL) that reiterates key concepts and requirements included

More information

NATIONAL BANK OF ROMANIA

NATIONAL BANK OF ROMANIA NATIONAL BANK OF ROMANIA Regulation No. 18/2009 on governance arrangements of the credit institutions, internal capital adequacy assessment process and the conditions for outsourcing their activities,

More information

EIB Group Risk Management Charter

EIB Group Risk Management Charter EIB Group Risk Management Charter 16 th July 2015 EIB Group Risk Management Charter A. Definitions Core definitions are outlined in this section. These definitions shall establish a common language for

More information

Supervisor of Banks: Proper Conduct of Banking Business [9] (4/13) Sound Credit Risk Assessment and Valuation for Loans Page 314-1

Supervisor of Banks: Proper Conduct of Banking Business [9] (4/13) Sound Credit Risk Assessment and Valuation for Loans Page 314-1 Sound Credit Risk Assessment and Valuation for Loans Page 314-1 SOUND CREDIT RISK ASSESSMENT AND VALUATION FOR LOANS Principles for sound credit risk assessment and valuation for loans: 1. A banking corporation

More information

Risk Concentrations Principles

Risk Concentrations Principles Risk Concentrations Principles THE JOINT FORUM BASEL COMMITTEE ON BANKING SUPERVISION INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS INTERNATIONAL ASSOCIATION OF INSURANCE SUPERVISORS Basel December

More information

DNB Liquidity Pillar 2 Supervision. Seminar Das neue SREP Konzept der Aufsicht Clemens Bonner (c.bonner@dnb.nl)

DNB Liquidity Pillar 2 Supervision. Seminar Das neue SREP Konzept der Aufsicht Clemens Bonner (c.bonner@dnb.nl) DNB Liquidity Pillar 2 Supervision Seminar Das neue SREP Konzept der Aufsicht Clemens Bonner (c.bonner@dnb.nl) Legal framework Act on Financial Supervision (Wft) Decree on Prudential Rules pursuant to

More information

SUPERVISION GUIDELINE

SUPERVISION GUIDELINE SUPERVISION GUIDELINE G6: GUIDELINES FOR LOAN CLASSIFICATION AND PROVISIONING FOR IMPAIRED ASSETS Issued To All Licensed Financial Institutions AUTHORITY Section 316 (4) of the International Business Corporations

More information

Capital Adequacy: Internal Ratings-based Approach to Credit Risk

Capital Adequacy: Internal Ratings-based Approach to Credit Risk Prudential Standard APS 113 Capital Adequacy: Internal Ratings-based Approach to Credit Risk Objective and key requirements of this Prudential Standard This Prudential Standard is directed at ensuring

More information

Code of Conduct for Business Lending to Small and Medium Enterprises

Code of Conduct for Business Lending to Small and Medium Enterprises 2012 Code of Conduct for Business Lending to Small and Medium Enterprises Scope This Code applies to all business lending by regulated entities. This Code shall not apply to Credit Unions. Credit Union

More information

Proposed Framework for Systemically Important Banks in Singapore

Proposed Framework for Systemically Important Banks in Singapore CONSULTATION PAPER P008-2014 June 2014 Proposed Framework for Systemically Important Banks in Singapore PREFACE i MAS proposes a framework to identify domestic systemically important banks ( D-SIBs ) in

More information

REINSURANCE RISK MANAGEMENT GUIDELINE

REINSURANCE RISK MANAGEMENT GUIDELINE REINSURANCE RISK MANAGEMENT GUIDELINE Initial publication: April 2010 Update: July 2013 Table of Contents Preamble... 2 Introduction... 3 Scope... 5 Coming into effect and updating... 6 1. Reinsurance

More information

Guidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004

Guidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004 Guidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004 1. INTRODUCTION Financial institutions outsource business activities, functions and processes

More information

Authorisation Requirements and Standards for Debt Management Firms

Authorisation Requirements and Standards for Debt Management Firms 2013 Authorisation Requirements and Standards for Debt Management Firms 2 Contents Authorisation Requirements and Standards for Debt Management Firms Contents Chapter Part A: Authorisation Requirements

More information

China International Capital Corporation (UK) Limited Pillar 3 Disclosure

China International Capital Corporation (UK) Limited Pillar 3 Disclosure 1. Overview Pillar 3 Disclosure March 2014 China International Capital Corporation (UK) Limited Pillar 3 Disclosure The European Union s Capital Requirements Directive ( CRD ) came into effect on 1 January

More information

BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM

BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551 DIVISION OF BANKING SUPERVISION AND REGULATION DIVISION OF CONSUMER AND COMMUNITY AFFAIRS SR 12-17 CA 12-14 December 17, 2012 TO

More information

PRAKAS ON ASSET CLASSIFICATION AND PROVISIONING IN BANKING AND FINANCIAL INSTITUTIONS

PRAKAS ON ASSET CLASSIFICATION AND PROVISIONING IN BANKING AND FINANCIAL INSTITUTIONS PRAKAS ON ASSET CLASSIFICATION AND PROVISIONING IN BANKING AND FINANCIAL INSTITUTIONS The Governor of the National Bank of Cambodia - With reference to the Constitution of the Kingdom of Cambodia; Unofficial

More information

Loi M Bakani: Effective compliance, risk mitigation and control

Loi M Bakani: Effective compliance, risk mitigation and control Loi M Bakani: Effective compliance, risk mitigation and control Speech by Mr Loi M Bakani, Governor of the Bank of Papua New Guinea, at the Institute of Banking and Business Management (IBBM) seminar on

More information

Monetary Authority of Singapore THEMATIC REVIEW OF CREDIT UNDERWRITING STANDARDS AND PRACTICES OF CORPORATE LENDING BUSINESS

Monetary Authority of Singapore THEMATIC REVIEW OF CREDIT UNDERWRITING STANDARDS AND PRACTICES OF CORPORATE LENDING BUSINESS Monetary Authority of Singapore THEMATIC REVIEW OF CREDIT UNDERWRITING STANDARDS AND PRACTICES OF CORPORATE LENDING BUSINESS MAS Information Paper February 2016 Contents 1 Executive Summary 1 2 Credit

More information

Basel Committee on Banking Supervision. Principles for Sound Liquidity Risk Management and Supervision

Basel Committee on Banking Supervision. Principles for Sound Liquidity Risk Management and Supervision Basel Committee on Banking Supervision Principles for Sound Liquidity Risk Management and Supervision September 2008 Requests for copies of publications, or for additions/changes to the mailing list,

More information

Guidance Note: Stress Testing Class 2 Credit Unions. November, 2013. Ce document est également disponible en français

Guidance Note: Stress Testing Class 2 Credit Unions. November, 2013. Ce document est également disponible en français Guidance Note: Stress Testing Class 2 Credit Unions November, 2013 Ce document est également disponible en français This Guidance Note is for use by all Class 2 credit unions with assets in excess of $1

More information

CommInsure Capital Adequacy Disclosure. Version 1 Dated: 30 June 2014

CommInsure Capital Adequacy Disclosure. Version 1 Dated: 30 June 2014 CommInsure Capital Adequacy Disclosure Version 1 Dated: 30 June 2014 CommInsure CommInsure is a registered business name under which the insurance companies in the Commonwealth Bank Group (the Group) conduct

More information

BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994

BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 BANKING UNIT BANKING RULES OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 Ref: BR/14/2009 OUTSOURCING BY CREDIT INSTITUTIONS AUTHORISED UNDER THE BANKING ACT 1994 INTRODUCTION

More information

PART A: OVERVIEW...1 1. Introduction...1. 2. Applicability...2. 3. Legal Provisions...2. 4. Effective Date...2

PART A: OVERVIEW...1 1. Introduction...1. 2. Applicability...2. 3. Legal Provisions...2. 4. Effective Date...2 PART A: OVERVIEW...1 1. Introduction...1 2. Applicability...2 3. Legal Provisions...2 4. Effective Date...2 PART B: INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS...3 5. Overview of ICAAP...3 6. Board and

More information

Risk Management. Credit Risk Management

Risk Management. Credit Risk Management Risk Management In response to market changes, the Bank intensified proactive risk management to improve the Group s overall risk control capability. Credit Risk Management The Bank made deeper adjustments

More information

Guidelines. on capital measures for foreign currency lending to unhedged borrowers under the supervisory review and evaluation process (SREP)

Guidelines. on capital measures for foreign currency lending to unhedged borrowers under the supervisory review and evaluation process (SREP) EBA/GL/2013/02 20 December 2013 Guidelines on capital measures for foreign currency lending to unhedged borrowers under the supervisory review and evaluation process (SREP) Guidelines on capital measures

More information

EBA final draft Regulatory Technical Standards

EBA final draft Regulatory Technical Standards EBA/RTS/2014/11 18 July 2014 EBA final draft Regulatory Technical Standards on the content of recovery plans under Article 5(10) of Directive 2014/59/EU establishing a framework for the recovery and resolution

More information

Guidelines for the Management of Country Risk Swiss Bankers Association

Guidelines for the Management of Country Risk Swiss Bankers Association Guidelines for the Management of Country Risk Swiss Bankers Association Contents Introduction 23 I Country Risk 24 II Risk Policy 25 1. Content 25 2. Responsibility 25 3. Minimum Requirements 25 III Recording

More information

Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent Liquidity Risks. March 1, 2016

Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent Liquidity Risks. March 1, 2016 Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation Office of the Comptroller of the Currency Interagency Guidance on Funds Transfer Pricing Related to Funding and Contingent

More information

Supervisory Letter. Current Risks in Business Lending and Sound Risk Management Practices

Supervisory Letter. Current Risks in Business Lending and Sound Risk Management Practices Dollars in Billions Supervisory Letter Current Risks in Business Lending and Sound Risk Management Practices The September 2009 Financial Performance Report data reflects an increasing portion of loans

More information

COMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Expectations

COMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Expectations Additional Tools: COMMERCIAL LENDING POLICY DEVELOPMENT GUIDE Minimum Expectations Class 2 Institutions February 2014 Ce document est également disponible en français. COMMERCIAL LENDING POLICY DEVELOPMENT

More information

Objective and key requirements of this Prudential Standard

Objective and key requirements of this Prudential Standard Prudential Standard LPS 110 Capital Adequacy Objective and key requirements of this Prudential Standard This Prudential Standard requires a life company to maintain adequate capital against the risks associated

More information